Banks call for the adoption of IFRS standards

Romanian Association of Banks proposed to the central bank the conversion to international financial reporting standards on January 1, 2012, which means that the introduction of IFRS provisioning regulations should be in place as of the end 2009.

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ARB bankers say that in order to comply with the calendar, the accounting and fiscal methodology must be passed “in a reasonable timeframe”.

“The banking community will propose to the National Bank of Romania to introduce the IFRS provisioning regulation as of December 31, 2009, stressing that banks unable to meet the new system as of this date would be permitted to use the international accounting standards in their individual accounts from June 2010”, reads the press release remitted by the association.

As for the controversial issue raised by the Social Democratic Party (PSD), regarding a 12-month suspension of loan payments for small and medium-sized enterprises, the association avoided to take a clear position on the issue, saying that debt restructuring actions should be made in line with each bank’s risk policy, group policy in the issue, and cash availability, “while complying with the internal lending standards and procedures”.

The association added that since the end of last year, the member banks “started to reevaluate the financial situation of borrowers facing hardships in repaying their loans, and on a case-by-case basis, lenders have decided to put off a debt repayment or to defer payment, refinance or fully restructure the respective credit facilities”, seeking solutions to head off a flood of foreclosures or insolvencies among small and medium-sized enterprises.